Dear Team, Can anyone tell me that if an employee’s salary is more than Rs 21000 then he should get bonus? If yes then how much?
From India
Acknowledge(0)
Amend(0)
34From India
Acknowledge(0)Amend(0)
If the salary is more than Rs 21,000, he will not be 'entitled' to a bonus as per law. But if the gross amount contains elements like traveling allowances, house rent, incentives, commission, etc., which are excluded from the scope of salary, then those amounts should be excluded. If the net salary is less than Rs 21,000, then he would get a bonus. The amount of the bonus depends on the percentage fixed by the organization. Depending upon the profits the company made in the last financial year, it shall vary from 8.33% to 20% of the bonus qualifying salary.
Bonus qualifying salary means Rs 7,000 or such amount as fixed by the government as the minimum wage for the scheduled industry, whichever is higher. That means if, in respect of any employment, the statutory minimum wage is Rs 12,000, the bonus should be calculated as if the wage is Rs 12,000 per month. If no minimum wage has been fixed for the industry, obviously, the salary for the calculation of the bonus will be Rs 7,000 per month. Any unpaid days' wages (LOP days) will be proportionately deducted from the above (12,000 or 7,000, as the case may be). The total annual salary, which would qualify for a bonus, shall be multiplied by the percentage fixed (i.e., any rate between 8.33% and 20%) to get the amount of bonus payable.
From India, Kannur
Acknowledge(0)Amend(0)
Bonus qualifying salary means Rs 7,000 or such amount as fixed by the government as the minimum wage for the scheduled industry, whichever is higher. That means if, in respect of any employment, the statutory minimum wage is Rs 12,000, the bonus should be calculated as if the wage is Rs 12,000 per month. If no minimum wage has been fixed for the industry, obviously, the salary for the calculation of the bonus will be Rs 7,000 per month. Any unpaid days' wages (LOP days) will be proportionately deducted from the above (12,000 or 7,000, as the case may be). The total annual salary, which would qualify for a bonus, shall be multiplied by the percentage fixed (i.e., any rate between 8.33% and 20%) to get the amount of bonus payable.
From India, Kannur
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Register and Log In.
Bonus act amendment gazette copy.pdf